I have been contacted by Res.net to list a property. On the Listing addendum there are several things that I am personally liable for and have been asked to put the utilities in my name and the commission is set at 5% - all red flags to me. Do these seem reasonable requests? Any thoughts on my red flags?
Run, don't walk away from this! Never accept liability for a property that you list. Your E&O will not cover you. Also, whether or not you realize this YOU are responsible to disclose material defects in the property - even though the bank may tell you that you are not to make any representations. If you area REALTOR® you must comply with the Code of Ethics and State Law and Regulations in Colorado!!!
We have quite a few reo agents in our office and they all are required to put the utilities in their names. Some of the agents are also working for 5% and less!
This is very common for an REO listing, you can put utilities under your company name (i.e. a corporation) if allow by the city of servicer. And yes 5% commission is it. Usually 3% to the buyers agent and 2% to you the listing agent. I have sold over 40 homes with RES.NET and its all the same. Just keep up with the tasks assigned to you through res.net GOOD LUCK and congrats on a new listing.
Putting the utilities in the listing agents name is common in Northern Kentucky. Ask how the repayments are arranges especially turn around time. They may also request you get the property re-keyed, using a quickset lock with their specifications. They may want you to check on it weekly and take photo of any problems that develop, Another question is how often do they require updating the BPO. I would check with other agents in your area to verify what this REO company may require and how easy or difficult they are to work with. Check with your broker about the commission, if the buyer's agent get 3% only leaving you with 2%, it may not be worth the time invested.
This is standard practice for RES.NET listings. For utilities, you submit your bills and copies of payment and you will be reimbursed. RES.NET is actually a great company to be connected with for REO listings. We've been very successful with them - you just have to learn their system, that's all.
It can all be concerning. I think the power should be in their name. 5% sounds typical. -Dinah Lee
This seems to be more common than not. It is not right -- but still this seems to be the way it is. All the best.
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